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In May 2017, Marco Santana and Elena Morales thought their dreams of starting their own business had ended.
The husband-and-wife co-founders of SMT Automation had moved from Mexico to Michigan in 2011 with decades of experience in the automotive industry under their belt. In January of 2017, they had launched their machine-automation and programming business in their basement — like so many legendary American business stories.
Over those first five months, Santana and Morales bootstrapped their company into being. They invested nearly $20,000 from their own savings to build a 15-person team, create a website, and purchase computers for their employees.
But after that initial momentum, they suddenly faced an uncertain future: Despite signing a contract with global robotics company KUKA, they lacked the funds to pay their team to complete the work.
“Elena was working another job at the time, and we used the money from Elena’s job to pay the team,” says Marco. “One day, we decided we needed to stop. I would talk to KUKA, and I would start to find a new job. We didn’t have enough money to pay our people.”
The next day, everything changed. Elena had been working with the Small Business Administration to establish a line of credit for SMT Automation. One day after they nearly shut down the company, the credit line was approved.
As it turns out, SMT Automation was just getting started. Since then, the company has grown and thrived by providing design and engineering services; in-house CNC, laser-cutting, and 3D-printing manufacturing capabilities; and machine integration services for large companies in the region.
“The message is clear for entrepreneurs in Michigan,” says Marco Santana. “There are a lot of opportunities to have a business and to learn something new. We can do anything here, and there’s a lot of support to do it.”
Currently headquartered in Roseville, SMT Automation’s client roster now includes major players such as General Motors, Magna Lighting, Kostal Automotive, and Webasto. The scope of their business has evolved significantly since 2017, as they have adapted and expanded their service offerings to meet the complex needs of the mobility industry.
“Marco has been in the automation business for a long time, and I have a lot of experience handling purchasing for different companies,” Elena explains. “When we started the company, those were our roles. But by 2018, we began offering machine integration, and we bought our building in Roseville. Now we have three different divisions, and we have been trying to diversify as much as possible.”
That diversification strategy took shape during another challenging time in SMT Automation’s history: During the pandemic in 2020, they were forced to lay off employees due to work stoppages across the mobility industry.
“We had to basically survive with the minimum,” Elena says. “It taught us to be adaptable. That is why we want to be diversifying and not putting all our eggs in one basket, because a lot of unexpected things can happen – whether it’s COVID or the GM strike last year.”
GEM and other partners in the region, such as the Economic Growth Institute at University of Michigan, are helping SMT Automation become even more adaptable. GEM has provided funding and support to help SMT Automation expand its client base beyond traditional automotive companies, including talent transformation programs and helping them identify new clients in the electric mobility sector.
As a result of those opportunities and the company’s focus on diversification, SMT Automation has ambitious plans for future growth. They are building a new facility in Bruce Township that is three times the size of their current office, and they are helping to develop the next generation of mobility talent.
“We really want to be prepared for what is coming,” Marco says. “The younger generations are interesting… I’ve been programming PLCs (programmable logic controllers) for more than 25 years, and it used to take many years to learn programming. Now, in six months, younger workers learn a lot because the computer side is easy for them. But they need additional skills to make things work in the correct way, and in a safe way.”
In many ways, SMT Automation is a shining representation of the exceptional talent in the Detroit Region, the work GEM and its partners are doing to support mobility businesses in Southeast Michigan, and the diverse array of entrepreneurs shaping the future of the region. Originally hailing from Mexico, Santana and Morales are a perfect example of turning the American Dream into a reality through Detroit’s trademark resilience.
“We are really a family of faith,” Elena says. “We always know that the next day is going to be better. It’s something that, since the beginning, is in our home, in our family, in our job, always breathing with that faith. And I think it’s making a lot of difference in our lives.”
Click here to watch a short video on SMT Automation and other GEM successes.